Aldar's Q2 2015 net profit up 18% to $163m
In July 2015, Aldar announced that it had made the decision to adopt IFRS 15 revenue recognition accounting policy early
Aldar has recorded an 18% increase in their Q2 2015 net profit, to $163m (AED601m) from $138m (AED509m).
The increase is owed to continued growth in recurring revenues, higher development margins and lower finance costs.
Revenues for the second quarter 2015 of the Abu Dhabi developer were $299m (AED1.1bn) compared to $571m (AED2.1bn) in the second quarter 2014.
Gross profit from recurring revenue assets grew 60% in Q2 2015 to $92.5m (AED340m) from $57.9m (AED213m) driven by the contribution of the fully leased and occupied residential portfolio at The Gate Towers and al rayyana; and revenues from Yas Mall.
In its filing to the Abu Dhabi Securities Exchange, Aldar Properties CEO, Mohammed Al Mubarak commented: “Aldar had a strong second quarter driven by the continued growth and stabilisation of our recurring revenue asset portfolio. This has resulted in an improvement in the underlying quality of earnings. We remain on track to meet our target level of debt and have paid off a further $299m (AED1.1bn) during the quarter.”
He also added, “Positive interest in our new developments, Nareel, Al Merief and Meera demonstrates that we are bringing the right products to market at the right time. We continue to grow our recurring revenues, strengthen our balance sheet and monetise our land bank through implementing a clear and well defined development plan”.
In June 2015, Aldar launched Meera, a residential development on Shams Abu Dhabi, Al Reem Island. Meera, a mid-market product, features two 26-storey towers overlooking a landscaped park, with one, two and three-bedroom apartments. Meera Phase I sales are complete with 150 units sold.
“The main construction contracts awarded at Ansam and Hadeel projects are progressing well,” said Mubarak.
In July 2015, Aldar announced that it had made the decision to adopt IFRS 15 revenue recognition accounting policy early, ahead of mandatory adoption from 1 January 2018.